Pakistan Economy - News & Updates - Archive

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Ukraine offers technology transfer​

ISLAMABAD: Ukraine has offered technology transfer in the fields of mineral, gas and health diagnostic system to Pakistan.

Ambassador of Ukraine Igor Pasco called on the Federal Minister for Commerce Makhdoom Amin Fahim in his office on Tuesday. The federal minister said, Ukraine is a big market for semi-finished goods and asked for strengthened trade relations with them.

There exists a big scope of cooperation, because both the countries are members of WTO. Pasco wished of technology transfer in the fields of mineral, gas and health diagnostic system.

The health diagnostic system could be used in backward areas of the country where hospitals are short. The health diagnostic system could overcome the dearth of dispensaries in the far-flung areas of the country up to a larger extent. Ukraine could use the Gwadar Port via Tajikistan for an easy access to the Gulf countries, the federal minister said.

Makhdoom Amin Fahim asked Trade Development Authority of Pakistan to start level playing field with Ukraine government for better trade links and commercial ties by starting initial meetings.

 

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Canadian investment in power sector urged​

* Govt plans to bring 35,000MW by 2016​

ISLAMABAD: Federal Minister for Water and Power, Raja Pervez Ashraf on Tuesday claimed that the power sector has great potential and invited Canadian investors to invest in this sector.

The minister assured the government of full support and assistance to facilitate the Canadian investors to invest in water and power sectors. The minister expressed these views during a meeting with Canadian High Commissioner to Pakistan, Randolph Mank. They discussed matters of bilateral relations, economic cooperation between the two countries and to explore the investment opportunities in the water and power sectors of Pakistan.

The minister told the envoy that power sector has great potential and the investors in this sector were getting high returns due to incentive based liberal policy. The water and power minister said that Pakistan had close relations with Canada. Pakistan values the help and support of Canada and was desirous of expanding bilateral relations in all sectors.

Ashraf said the government attached high priority to foreign investment and an investor friendly environment was being provided to the investors. He also briefed him on the current power situation and said that the government was taking necessary measures to generate electricity to bridge the demand and supply gap through fast track and rental power projects by December 2009. The government has planned to bring 35,000 MW by the year 2016 and necessary steps were being taken in this regard, he added.

Mank said that the Canadian companies were working in Pakistan in different projects and were keen to expand their investment plan. Canada has expertise in hydel power generation and said that the Canadian companies were willing to invest in this sector.

He said that Canada has always supported Pakistan and will continue its assistance for the people of Pakistan. A large number of Pakistanis are visiting Canada every year for education, business and tourism purposes. Senior Trade Commissioner of Canadian High Commission, Marilyn MacLean Denton was also present.

 

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GDP growth reduction, high interest rates will cause unemployment: ILO ​

LAHORE (January 14 2009): The representative of the Geneva based International Labour Organisation (ILO) for Policy Integration Dr Muazzam Mahmood has warned that reduction in annual GDP growth rate from six percent to three percent and higher bank interest rates would cause unemployment and discourage investment in industry and agriculture sectors in Pakistan.

He was addressing the two-day tripartite national seminar on the subject "International financial crisis & its impact and policy responses in Pakistan," organised by Pakistan Workers Federation (PWF) here on Tuesday.

The ILO representative called upon the international financial institutions like International Monetary Fund (IMF), World Bank (WB) and the Asian Development Bank (ADB) to help the developing countries to overcome the ill effects of the current financial crisis.

He said the rich countries and the financial institutions should extend assistance to the poor countries for job creation and poverty alleviation through significant increase in GDP growth rate.

Addressing the inaugural session, ILO Director for Pakistan Doinglin Li said that ILO promotes "decent work" for the workers in a state of equity, freedom, dignity and security. "It is extending technical assistance for skill development and elimination of child and bonded labour in close co-operation with the United Nations and its specialised agencies" he added.

Earlier, president Employers Federation of Pakistan, Punjab region, Mian Tajamal Hussain stated that the ongoing electricity and gas load shedding has seriously affected the local industries and export, forcing lay off of millions of workers and closure of thousands of industrial units in the country. He called upon the government to take immediate measures for overcoming the energy crisis and uninterrupted running of the industrial units.

Veteran labour leader Khurshid Ahmad and president Pakistan Workers Federation (PWF) Chaudhry Talib Nawaz said the work force has been greatly hit by the global financial crisis and law and order situation in the country. They argued that bankruptcy of some USA financial institutions had exposed the capitalist system of free market economy, based on unchecked greed of profit in the absence of any international financial regulatory framework.

They warned that if the government did not overcome the load-shedding of electricity and gas and did not adopted policies to control unemployment, then there would be devastating social upheavals in the country. Secretary Labour and Human Resources Punjab Abdul Rauf said the government had raised minimum wages for the semi-skilled and skilled workers. "The government would ensure implementation of labour laws and elimination of abuse of child and bonded labour in the province" he added.

Prominent economist Dr Amkal Hussain, Shahid Kardar, Dr Sabur Ghayur, Chairman Planning Cell, Ministry of Labour and Manpower will address the participants of the seminar at the Bakhtiar Labour Hall on Wednesday (today).

 

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WB interested in Thar coal project: Qaim ​

Thursday, January 15, 2009

KARACHI: Chief Minister of Sindh, Qaim Ali Shah, has said eight blocks of Thar coal have already been developed and now the World Bank is also interested in two blocks of the Thar coal project. In this regard, it has already held two high-level meetings in Washington.

The CM said China was also very enthusiastic to be associated with the project and the government was in talks with it regarding the matter.

Shah added that both small and big investments worth over $2 billion were in the books and would be announced once they were finalized.

Shah visited the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday to meet businessmen and discuss issues related to the economy with them.

The CM clarified that the Sindh Energy Board would decide the power tariff that would be produced by Thar coal, NEPRA and OGRA disputes regarding the subject were directionless.

He further said the government would be holding a high level meeting in two days to discuss several issues and the matter of Thar coal would also be taken up there. The Thar coal issue has been in question for over a decade as it had been initiated by the late Benazir Bhutto back in 1994. He said the then president had also realized the potential of the project. Shah also said the agricultural sector retains great potential especially in terms of crop development and land development and there were foreign investors looking towards investing in that direction as well.

He stated Pakistan wasn’t facing severe economic crises as some of other countries like Dubai and USA where Pakistani investors had been crippled by losses. He said all the issues that were being faced by the business community were in the knowledge of the top officials of the country, however, problems such as rising unemployment was not the issue of the government alone and the private sector also had its share in it as it is the mainstream force that creates employment opportunities.

The CM expressed that the government would do its best to strengthen the foundations of the private sector. “To bolster the economy, active participation of the business community is essential” he stressed.

The CM stated though the confidence of the investors had been shaken for a while, confidence building measures were being taken ardently and already the political side of the country was positive and constructive. Shah also said the government was concentrating on the primary education in the country and already 2,500 schools had been established.

He said the World Bank had also pledged $300 million for the primary school education enhancement in the country. He added that 7,000 teachers had already been employed and an additional 15,000 teachers were to be added to the list including universities.

He said the state was planning to establish an education city for which he had personally visited a few sites. The CM further articulated that if the private sector was interested in setting up a university, then the government would facilitate it.

 

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Rs6bn approved for gas network expansion schemes ​

Thursday, January 15, 2009

KARACHI: Sui Southern Gas Company (SSGC) on Wednesday said that the Prime Minister Secretariat has approved Rs6 billion for 111 gas network expansion schemes for fiscal year 2008-09.

From 2002-08, SSGC spent Rs93 million on 61 gas expansion schemes for far-flung areas, the company told Senate Standing Committee on Local Government and Rural Development.

Under the first phase of the Peoples’ Work Program (PWP), 64 schemes were started in Balochistan and Sindh, a press release quoted Muhammad Arif, senior general manager customer services, as saying.

“With regards to PWP-II, a total of 501 gas network expansion schemes were identified with 248 and 253 for Balochistan and Sindh respectively,” he said.

The schemes which are identified by MNAs, senators and other notables are jointly funded by the government and SSGC. The committee was told that 13 schemes have been shelved by the government.

Arif said the government has been given a cost-benefit analysis on the individual costs of pipes gas and LPG air mix for Balochistan towns of Surab and Noshki.

“For the said project Rs500 million were released by the government while the balance is being borne by SSGC.”

The committee was also informed on the status of schemes being implemented in collaboration with the Sindh government.

 

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Govt seeks foreign capital in Balochistan ​

Thursday, January 15, 2009

ISLAMABAD: State Minister for Industries and Production, Dr Ayatullah Durrani, has said the government has invited foreign investors to invest in Balochistan, which provides many opportunities of investment, particularly in the field of mines and minerals.

“Investment and modern technology are needed for its development,” he said while talking to the Vice Chancellor of Balochistan University, Prof Dr Masoom Yaseen Zai, at his office here on Wednesday. They also discussed the University’s problems and its development.

Besides the education sector, he said, various development schemes had been launched in Balochistan and Gwadar port was one of them. After the start of the port, he said, business activities had increased in the province, “which is a good sign for the people of Balochistan.”

Many people and families were getting benefits from port activities including jobs and business, he added.

He said an expansion plan for the Balochistan University should be prepared to meet the requirement of students of the province. The government, he said, was very keen to develop Balochistan for which various plans were under consideration including development of educational institutions.

Huge funds had been allocated for the development of education sector of the province, he said, adding “expansion of Balochistan University is the need of the hour because of interest of people.”

 

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Proposals for economic boost to be prepared ​

Thursday, January 15, 2009

LAHORE: In a bid to boost economic activities in the country, the Punjab Economic Forum has decided to prepare a set of proposals to be forwarded to the government for their implementation.

The decision was taken at an emergent meeting of Punjab Economic Forum chaired by its President Sohail Lashari and attended by Prof Khawaja Amjad Saeed, Mian Anjum Nisar, Sikandar M Khan, Siddiqueur Rehman Rana, Husnain RazaMirza, Mohammad Tariq Bucha, Ch Hamid Malhi, Yaqoob Tahir Izhar among others.

All participants, who are considered to be experts of their respective area of business, were of the firm opinion that the government in consultation with the private sector should concentrate on enhancement of both the agriculture yield and industrial production and for the purpose it would have to reset its priorities particularly with reference to provision of energy.

They expressed thought that the country has no dearth of resources and if all the available resources are channelised in right manner, even the ongoing financial recession could do no harm to the people. It was also suggested in the meeting that if the government ensures provision of diesel to the farming sector at discounted rates and the concept of mechanized farming is implemented in true letter and spirit, nothing could stop green revolution in this area.

They also urged the government to start projects other than Kalabagh Dam to ensure ample electricity to the industry as the issue of Kalabagh Dam has been politicized to the extent. They said all the issues being faced by the economy should be identified and both long-term and short-term strategies should be evolved as the short-term plans would wear off the intensity of the crisis while the long-term would help put economy back on rails.

The participants were of the view that as there is no short cut to progress and prosperity therefore everybody would have to play his role in the larger interest of the country.

Speaking on the occasion, president of Punjab Economic Forum, Sohail Lashari, informed the meeting that invitations to all the chambers in Punjab were being extended for having their input over the economic meltdown that would be incorporated in the proposals to be forwarded to the government.

 

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President exempts Balochistan from PSDP cut ​

Thursday, January 15, 2009

ISLAMABAD: President Asif Ali Zardari has exempted Balochistan’s funds being provided under the Public Sector Development Programme (PSDP) from any cut during the current financial year, The News has learnt.

The president announced the exemption in a recent high-level meeting, which was also attended by Prime Minister Syed Yousuf Raza Gilani. The PSDP faces an overall cut of one percent of GDP, ie Rs 110 billion, under the directive of the IMF in order to achieve a fiscal deficit target of 4.2 per cent of GDP or Rs 562 billion in the current financial year.

The overall cut in the PSDP clearly means that throw forward is bound to increase in years ahead and all is happening at a time when politicians are seen moving around the P Block having endorsement letters from all powerful quarters to get their development schemes included in the next PSDP for 2009-10.

According to the minutes of the meeting, which was presided over by President Asif Ali Zardari, the president exempted Balochistan from any budgetary cut in order to avoid delays in completion of the ongoing projects.

“The government has blacklisted one contractor of the National Highway Authority (NHA) owing to a variety of reasons,” the minutes of the meeting said. The federal government, the sources said, was financing Rs 43 billion worth of projects under the PSDP in Balochistan during the current year. Owing to financial crisis, almost all projects falling under the PSDP are facing a cut in terms of money in the remaining three provinces ie the Punjab, Sindh and the NWFP.

The meeting was also informed that Qila Abdullah-Chaman road would be completed within the stipulated timeframe. “The president and prime minister’s decision to exempt Balochistan from a cut in PSDP allocation will help the neglected province to complete projects well on time,” a source commented.

When official spokesman for the Planning Commission, Asif Sheikh, was contacted for comments, he confirmed that both the president and prime minister have taken this decision in order to avoid delays in completion of ongoing projects.

However, the sources said that the ministry of finance had promised to release 15 percent financial resources against cash plan tabled by the respective ministries/division but actual releases were even much less than the envisaged allocations keeping in view received responses from all ministries/divisions and attached departments.

“We have not yet done review meetings of PSDP for the second quarter (Oct-Dec) period of the current fiscal year which will actually enable the Planning Commission to get any clearer picture about releases and spending of PSDP amount,” said the official and added that they received numerous complaints about reduction in releases in the second quarter of the ongoing financial year.

“We can assume that the actual releases done by the finance ministry to all ministries/divisions and attached departments will not be more than 5 to 7 per cent against promised allocation of 15 per cent,” the official sources added.

The case of Balochistan, according to the official, is exception and special one and the incumbent regime wants to accomplish projects without any delays. Balochistan’s financial condition is not much smooth but the government’s recent decision to inject few billion rupees as well as the SBP’s decision to restructure its overdraft helped the provincial government to run its day-to-day affairs.

Prime Minister Syed Yousuf Raza Gilani provided Rs 3 billion from its own grant while another Rs3 billion would be provided to the province as royalty from Uch Power Ltd. Balochistan’s government told the center that Islamabad has blocked Rs 128 billion due share of the province under the head of the Gas Development Surcharge (GDS). “The Sindh government owes Rs 28 billion of Balochistan on account of GDS share,” a high-level official of Balochistan government claimed while talking to this scribe.

 

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Pakistan losing rice export markets due to govt intervention​

KARACHI: Pakistan may export rice worth $3.4 billion in the current fiscal year owing to the bumper crop of all varieties if the government’s machineries stop intervention in the market, the traders and exporters said.

The country had exported rice worth $2.5 billion in 2008.

“If the intervention of the Trading Corporation of Pakistan (TCP) and PASSCO were not stopped, it would be impossible to achieve the export target.” a trader said.

“Pakistan is losing its share in international rice exports and may not meet its export target for the current financial year,” Abdul Rahim Janoo, chairman Rice Exporters Association of Pakistan (REAP) told Daily Times.

TCP has quoted its rates at Rs 32.90 per kilogram on January 14 for the purchase of 25,000 metric tonnes, while its market price are in the range of Rs 25.77 per kg. The corporation is paying an extra amount of Rs 178 million.

The prices of basmati and non-basmati rice have increased by around 23 and 30 percent respectively, owing to government intervention in rice purchase.

Iraq, Philippine and Mauritius were the regular customers of Pakistani rice, but owing to the higher prices quoted by Pakistani traders, we have lost the market in these countries. So far these countries had officially announced tenders of 0.75 million tonnes.

REAP continues its opposition to government buying of rice via Passco and TCP Tenders, as owing to these tenders, Pakistani rice can no more compete with other origins and has lost major tenders in Iraq, Philippines and Mauritius during last week. These three countries have been buyers of Pakistani rice markets for last several years.

The association has called for cancellation of these high priced tenders as so far inaction from government has already lead to complete halt in new orders to rice exporters. This situation has lead to the closure of 70 rice export processing units in Punjab and a similar fate is expected in Sindh.

Nine basmati rice buyers in the Middle East have reneged on deals with India recently and this situation could go in Pakistan’s favor if the government play its due role by not intervening in the rice sector, he added.

The prices have dropped 28.5 percent to $1000 per tonne in the past one month owing to the global financial turmoil and good crops in India and Pakistan.

 

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Fauji Cement to install country’s largest cement plant​

ISLAMABAD: Fauji Cement Company Limited is setting up the largest cement plant ever built in Pakistan, says Company Secretary, Shabir Ahmed. The company had entered into contract with a world-renowned cement plant manufacturing firm Polysius AG (Germany) to supply state of the art plant and machinery to produce 7200 tonnes per day of clinker, he said in a press release issued here Wednesday. In order to witness the progress of the project, chairman Polysius AG, Dr Detlev Rose along with his team members visited the project site and witnessed the on-going construction activities. The team showed satisfaction over the progress of the Project. DESCON Engineering Limited (Pakistan) is responsible for completion of civil works, mechanical/electrical fabrication and erection. Abdul Razak Dawood, Chairman DESCON Engineering Limited represented the commission of the plant. Additional production of quality cement by Fauji Cement Company will help stabilise the cement prices in the local market.

 

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Biden’s ‘package’ and our response​

The bill that seeks to triple American aid to Pakistan, to make it $1.5 billion annually, is likely to become law after it is passed by the US Senate. The incoming chairman of the Senate Foreign Relations Committee, Senator John Kerry, said on Tuesday that he would push it “because Pakistan has a huge economic crisis. If anything winds up being one of the triggers for chaos in the country, it’s going to be the economic implosion, as much as anything else”.

The Pakistan aid bill that Senator Joseph Biden authored last year with Republican Senator Richard Lugar would give Pakistan non-military aid for five years, extendable for another five, making clear that the country’s real need was economic and not military. Mr Biden, who was recently in Pakistan and Afghanistan, will spearhead President Barack Obama’s foreign policy as a powerful vice president. The money will help improve schools, build clinics, drill wells and reform police services in Pakistan. Senator Obama too had signed the Pakistan bill before being elected as President of the United States.

Pakistan is in the grip of passions emphasising sovereignty and defiance but the logic of economic development has to dawn here sooner or later. There are two possible strands to the American “package”. The first is to be looked for in President-elect Obama’s statements in the past. The lowest point was when he thought he could allow attacks into Pakistan if Pakistan was unable to cope with Al Qaeda on its territory. He plans to reduce America’s troops in Iraq and bring more of them to Afghanistan to face up to Al Qaeda. However, after his visit to Afghanistan he has abstained from making categorical statements about attacking inside Pakistan.

The second strand is Mr Biden’s and that is the one more likely to be adopted by the realists in Washington. According to Pakistan’s leading economist Mr Shahid Javed Burki, Mr Biden has focused on the need “to economically stabilise the second largest Muslim country in the world”. The money will be spent in such a way as to take economic growth to the poorer segments of the population and poorer regions of the country. According to Burki: “Economic deprivation is a major reason for growing extremism in the Muslim world, and Pakistan is central to the problem of Islamic extremism, and Pakistan does not have resources of its own to get the country’s economy moving in the right direction”.

There will hopefully be little opposition in Pakistan to this approach to the problem of terrorism. In a moment of rage, most people tend to forget about the economy. They want radical changes of policy without making it clear how replacements for old dependencies can be found. It is known to everyone that the people and the industries in Pakistan are suffering because of the government’s inability to pay for power production. Pakistan has run from pillar to post asking for cash to bail out a clearly collapsing economy but has not found many donors even after going under an IMF programme for confidence-building.

It is easy to ordain in a fiery column that Pakistan should look for “other friends” but no one points out where to go to find someone willing to part with the kind of money America is willing to spend on Pakistan. The crux of the problem is our refusal to grasp the danger extremism and terrorism pose to us and the world. If the Biden-Lugar money is tainted in our minds because it will force us to “fight our own people”, let us not forget that the entire world including China supports America’s war against terrorism without the willingness to give us the money we need.

We will, of course, be brought under pressure on fighting terrorism and possibly on the AQ Khan issue, but that is not the problem we should worry about. We should start worrying about our ability to spend the money we get for development. The state is at the bottom of its capacity of service-delivery. The money we got during the Musharraf era — which gave us the biggest provincial development outlays in history — was not well spent. Education and health remained mired and, in the case of some projects, the funds had to be returned to the lending multilaterals.

Even if the attainment of national honour is the priority, it can’t be realised without economic development at rates that give us the extra cash to spend on the army. Islamabad is being angrily reprimanded by the TV channels for decorating US Assistant Secretary of State Richard Boucher and Vice President-elect Joseph Biden “while Gaza burns”, but the fact is that Pakistan has to survive economically in order to have the capacity to face up to any challenges, including the one in Gaza.

 

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Canada to increase annual aid for Pakistan from Canadian $20m to $50m​

ISLAMABAD (January 15, 2009): Prime Minister Syed Yousuf Raza Gilani has urged the Friends of Pakistan to help build the capacity of law enforcing agencies of Pakistan and participate in the development projects particularly in FATA and NWFP.

The Prime Minister was talking to Randolph Mank, new High Commissioner of Canada here at Prime Minister House Thursday.

He said the projects in tribal areas will generate economic activity in order to help reducing the unemployment which was the main reason of growing extremism.

The Prime Minister said that Pakistan attached high importance to its relationship with Canada.

He stated that Pakistan wanted to further strengthen these relations by adding substance to them and expressed the hope that during his tenure in Pakistan, he would focus on reinvigorating bilateral trade, investment and development assistance ties between the two countries.

The Prime Minister told the High Commissioner about his government's efforts to combat terrorism and his three pronged policy to wean away the peace loving majority of the FATA population from the extremists.

He regretted that continuing drone attacks by US and ISAF forces had impeded the success of that policy and called for their immediate halt.

He also dilated on endeavors undertaken by his government for improvement of relations with Afghanistan as well as for defusing tensions and Pakistan's offer of cooperation to India in the investigation of the Mumbai attacks.

He underscored that the leadership of Pakistan had been repeatedly reiterating its desire to have good neighbourly relations with India and for resolution of all the outstanding issues between the two countries through composite dialogue.

He hoped that the Indian side would respond to these sentiments in the same spirit.

Randolph Mank, the new High Commissioner stated that Canada considered peace and stability of Pakistan pivotal for a peaceful South Asia and particularly Afghanistan.

He said that Pakistan's expatriate community of around 400,000 was serving as a bridge between the two countries and was playing a constructive role in the socio-economic development of the multi- cultural society of Canada.

While assuring the Prime Minister that he would devote all his energies for promoting economic cooperation between the two countries during his stay here, the High Commissioner informed him that Canada's International Development Agency had decided to increase its annual aid for Pakistan from Canadian $ 20 million per year to around $ 50 million.

He said that the Canadian firms were taking keen interest in Pakistan's market and Barrick Gold was planning the largest single investment in mining, copper and gold in Balochistan. If that could materialize, it would offer employment to tens of thousands of local workers.

He sought Prime Minister's assistance for early finalization of Barrick Gold's investment by signing its agreement with the federal government.

The Prime Minister said that he has directed the concerned authorities to report the progress on this project to him.

 

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EFPs may unblock credit for Pakistan, India coal trade ​

LONDON (January 15 2009): A new trading tool may help unblock a growing spot coal market between India or Pakistan and major European traders and utilities - which has been hobbled by the freezing of credit lines across global markets. Exchanges For Physical (EFP) trades via trading platform globalCOAL have made trade between counterparties easier, dealers said.

India will import over 35 million tonnes of coal in 2009 and Pakistan around 3.5 million tonnes as part of world-wide coal trade of around 650 million tonnes. Producers said they have mostly found the credit problems too difficult to deal directly with buyers in the sub-continent, preferring to deal via traders. Indian and Pakistani traders who account for the bulk of spot import buying have been struggling to open letters of credit (LCs).

Some have even resorted to using their personal cash accounts to pay for cargoes. "Credit problems are killing the market," a Pakistan-based trader said. "It's extremely hard to get LCs." "The problem recently has not been the appetite to trade between the European and Indian counterparties but the recent doubling in the cost of credit," said Clive Murray, director of London Commodities Brokers (LCB).

"But our Indian customers are still willing and able to open LCs," he added. The first globalCOAL EFP took place on January 5 with a physical fixed-price trade at $85.00/T DES ARA. "The response to globalCOAL's EFPs has been tremendous," said globalCOAL Chief Executive Office Eoghan Cunningham.

The product was easy to handle and has been long established on the physical oil market, he said. "There is certainly a need to make it easier for counterparties to trade where credit is an issue," Cunningham added. "There are companies among our members who have said they will deal with each other exclusively on an EFP basis through globalCOAL and Intercontinental Exchange (ICE)."

Using EFPs via globalCOAL and ICE could eliminate financial risk by 90 percent to the point of delivery, he said, adding that delivery risk could not be completely eliminated. GlobalCOAL plans to launch a physically-settled DES ARA coal contract in Q2 and is also looking at possible over the counter (OTC) physical trade clearing with ICE.

Traders welcomed another tool for their business. "It's another option, definitely a good idea to see if it can be made to work," one major Europe-based coal trader said. "The globalCOAL plan is a step in the right direction, but it remains to be seen how it will work in practice." "There is a real need to make it easier to trade with India," said a large European utility/trader. "It doesn't remove all risk though. At the end of the day, the buyers still need to be able to open LCs."

Companies have been able to manage risk using index-linked physical trades and OTC coal swaps for several years. Credit-sleeving - where a bank acts as a fiduciary between counterparties - has also been available via London Commodity Brokers.

European companies have been able to deal with Indian counterparties for the past five months via LCB, with trades cleared by a bank with long experience of the Indian markets, LCB founder and director Clive Murray said. "LCB has traded deals with a floating physical leg and fixed price swap, traded at the same time, same volume, for some time now," Murray said. "The difference between this and globalCOAL's EFPs is that the swap is cleared through ICE."

EFPs using physically-deliverable futures could in the future leave players unable to make delivery vulnerable to squeezes by bigger players who can, he cautioned. The majority of Indian and Pakistani counterparties cannot trade derivatives or participate in margining arrangements with a clearing member requiring internationally recognised standardised contracts, he said.

 

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Productivity may be raised 50 percent by employing right persons: IBA director ​

KARACHI (January 15 2009): Dr Ishrat Hussain, former governor State Bank of Pakistan and Institute of Business Administration (IBA) Director, has said the local entrepreneurs and industrialists can increase their productivity by 50 percent if they employ the right person for the right job as is being done by the multinationals.

This he said while delivering his keynote address at the National Industrial Relations Conference organised by the Employers' Federation of Pakistan (EFP) in collaboration with International Labour Organisation (ILO) here on Wednesday. Dr Ishrat emphasised on the need of strong development of Human Resource Management in all sectors through which proper evaluation of the right person for the right job could be made.

Dr Ishrat advocated for the establishment of vibrant economic relationship with China and said, "our Qibla should not be towards western countries, instead we should look towards the eastern economy, which is the engine of growth." He appreciated the vital role being played by the expatriates in building the economy of the country by sending the foreign remittances, which showed their confidence on Pakistan economy.

He said Pakistan had great potential and businessmen and industrialist had the ability to do the best by running their businesses in a truly professional manner. Federal Secretary Labour and Manpower Malik Asif Hayat, who was the chief guest at the conference, said that in February 2009 the government would hold a Tripartite Labour Conference to discuss various issues relating to industrial relations and laws by inviting all the stakeholders.

He said the Prime Minister in his first address to the National Assembly stated that all Labour Laws of the country would be made in conformity with the International Labour Conventions. He said the government had developed a strategy for the revival of national economy with the objective of generating economic activity in the country, which would help in uplifting the economic conditions of the workers.

He further said that harmonious working relationship between workers and employers was for prompting productivity, competitiveness and growth of industry at well as guaranties decent wages and job security. Speaking on the occasion, Country Director ILO-Islamabad Donglin Li said ILO believed on the importance of dialogue between the government, the employers and the workers' organisations, which could not be denied, because it was instrumental in fostering social and economic progress of a country.

Dialogue among and between the governments and the two "social partners" on issues of common interest, plays a vital role in promoting social justice and social welfare. "We believe that the employers and workers' representative could also play a crucial role in guiding labour related policies and programmes."

In Pakistan, ILO has been implementing its Decent Work Country Programme in close collaboration with our tripartite constituents. "Presently, there are around 100 staff members working with ILO Office and district offices. We have 15 ongoing projects with a combined budget of 33 million dollars," he said.

EFP Vice President Khawaja Muhammad Nauman delivered the welcome address and Member of EFP Managing Committee Fasih-ul-Karim Siddiqui also spoke on the occasion. On this occasion, Industrial Relations Awards were also distributed among the three best companies by chief guest Malik Asit Hayat, Secretary Labour and Manpower. The first award was given to BASF Pakistan Ltd, second to Hinopak Motors (Pvt) Ltd, and the third was given to Shell Pakistan.-PR

 

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Government will provide all facilities to Irani industrialists: Taseer ​

LAHORE (January 15 2009): Governor General of Khorasan-e-Rizvi province of Iran Muhammad Javad Mohammadi Zadeh along with 34-member delegation called on Governor Punjab Salmaan Taseer at Governor's House here on Wednesday.

Both the leaders discussed matters of mutual interests, especially political ties between the two Islamic countries.

Speaking on the occasion, Salmaan Taseer stressed the need for improving co-operation in industrial, cultural and other sectors. He said that the government would provide all facilities to Irani industrialists who want to invest in Pakistan especially in Punjab. "Pakistan always gives due importance to enhance relations with Muslim brotherly country (Iran)," he said adding that Pakistan and Iran had supported each other in any time of difficulty.

Governor Punjab appreciated the firm stand of Iranian government for supporting people of Palestine struggling against the atrocities of Israel. The Khorasan's Governor stressed the need for getting guidance from the teachings and philosophy of Dr Allama Muhammad Iqbal, who advised the Muslims to unite against the evil forces.

He hailed the steps taken by the Pakistan government for the elimination of terrorism in the region and assured that Iran would provide all help to enhance ties with Pakistan in every sector. The 34-members delegation included Iranian officials, leading investors and Vice Chancellors of the different universities. Governor Punjab Salman Taseer also hosted a dinner for the delegation.